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Calpine plants begin operations at California plants

Calpine (CPN) has successfully commenced commercial operations at its Russell City Energy Center and Los Esteros Critical Energy Facility, both located in the San Francisco Bay area. Together, the two plants bring on-line more than 900 megawatts of combined-cycle natural gas-fired power generation capacity capable of meeting the electric needs of about 750,000 households. The full power output of both plants will be delivered to Calpine’s customer, Pacific Gas and Electric (PCG), which will also supply the natural gas fuel, under 10-year power purchase agreements. The Russell City plant has generated more than $25M to date in initial sales and property tax revenue, and recurring property tax revenues during operation are estimated at approximately $5M annually. Calpine owns 75% of the Russell City project and GE (GE) unit GE Energy Financial Services owns the balance. The Los Esteros plant is expected to contribute approximately $3M annually in recurring tax revenues to local governments and generated approximately $5M in one-time tax revenue as a result of the construction upgrade.